Defense Metals Corp. Closes Private Placement
Defense Metals Corp. Closes Private Placement
Financing
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./
VANCOUVER, BC
,
Oct. 30, 2020
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSX-V:
DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce that further to its news release on
October 27, 2020
,
it has closed a non-brokered private placement of 2,525,000 units (each a "
Unit
") for gross proceeds of
$505,000
(the "
Private Placement
"). As previously disclosed, each Unit was priced at
$0.20
and is comprised of one
common share and one common share purchase warrant ("
Warrant
"). Each Warrant is exercisable to purchase one
common share of the Company at a price of
$0.25
per share for a period of 12 months from the date of closing the
Private Placement.
The Company also announces that it has closed a non-brokered private placement of 405,000 flow-through common
shares ("
FT Shares
") at a price of
$0.25
per FT Share for gross proceeds of
$101,250
(the "
FT
Private
Placement
").
Craig Taylor
, CEO comments:
"With our highly successful flotation pilot plant now complete yielding 1,200 kilograms of high-grade REE
mineral concentrate, this current round of funding will allow us to work towards completion of a preliminary
economic assessment (PEA) for the Wicheeda REE Project which we hope to complete by the end of Q1
2021. We would like to thank all our supporters who continue to help Defense Metals de-risk and further
develop the Wicheeda REE Project."
The Company paid cash finder's fees of
$7,087.50
and issued 28,350 non-transferable finder warrants to certain
brokers on a portion of the private placements. The finder warrants otherwise have the same terms as the
Warrants.
Three directors of the Company participated in the private placement. Participation by insiders of the Company in
the private placements constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
"). Because the Company's shares
trade on the TSX Venture Exchange ("
TSXV
"), the issuance of securities are exempt from the formal valuation
requirements of section 5.4 of MI 61-101 pursuant to subsection 5.5(b) of MI 61-101 and exempt from the minority
approval requirements of section 5.6 of MI 61-101 pursuant to subsection 5.7(1)(a) and (b) of MI 61-101.
All securities issued in connection with the private placements are subject to a four month hold period from the
closing date in accordance with applicable securities laws.
The proceeds from these private placements will be used on the Company's Wicheeda rare earth element project
located in
Prince George, British Columbia
and for general working capital purposes.
Wicheeda REE Project
The Wicheeda REE project has indicated mineral resources of 4,890,000 tonnes averaging 3.02% LREO (Light
Rare Earth Elements) and inferred mineral resources of 12,100,000 tonnes averaging 2.90% LREO
1
.
Qualified Person
The scientific and technical information contained in this news release as it relates to the Wicheeda REE Property
has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX
Geoscience Ltd. of
Edmonton, AB
, a director of Defense Metals and a "Qualified Person" as defined in National
Instrument 43-101 –
Standards of Disclosure
for Mineral Projects
.
About Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing
metals and elements commonly used in the electric power market, military, national security and the production of
"GREEN" energy technologies, such as, high strength alloys and rare earth magnets. Defense Metals has an option
to acquire 100% of the 1,708 hectare Wicheeda Rare Earth Element Property located near
Prince George, British
Columbia
, Canada. Defense Metals Corp. trades in
Canada
under the symbol "DEFN" on the TSX Venture
Exchange, in
the United States
, under "DFMTF" on the OTCQB and in
Germany
on the Frankfurt Exchange under
"35D".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale
of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of
the securities in
the United States of America
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "
1933 Act
") or any state securities laws and may not be
offered or sold within
the United States
or to, or for account or benefit of, U.S. Persons (as defined in Regulation S
under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption
from such registration requirements is available.
Cautionary Statement Regarding Forward Looking Information
This news release contains "forward–looking information or statements" within the meaning of applicable securities
laws, which may include, without limitation, statements relating to the Company's plans for its Wicheeda project, use
of funds, completion of a PEA, the technical, financial and business prospects of the Company, its project and other
matters. All statements in this news release, other than statements of historical facts, that address events or
developments that the Company expects to occur, are forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may differ materially from those in the
forward-looking statements. Such statements and information are based on numerous assumptions regarding
present and future business strategies and the environment in which the Company will operate in the future, including
the price of rare earth elements, the ability to achieve its goals, that general business and economic conditions will
not change in a material adverse manner, that financing will be available if and when needed and on reasonable
terms. Such forward-looking information reflects the Company's views with respect to future events and is subject to
risks, uncertainties and assumptions, including those filed under the Company's profile on SEDAR at
www.sedar.com
. Factors that could cause actual results to differ materially from those in forward looking
statements include, but are not limited to, continued availability of capital and financing and general economic,
market or business conditions, adverse weather conditions, failure to maintain all necessary government permits,
approvals and authorizations, failure to maintain community acceptance (including First Nations), decrease in the
price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company's ability to
operate increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The
Company does not undertake to update forward–looking statements or forward–looking information, except as
required by law.
1
Technical Report on the Wicheeda Property, British Columbia, effective June 27, 2020 and prepared by APEX Geoscience Ltd. (Steven J. Nicholls, B.A. Sc., MAIG and Kristopher J. Raffle, B.Sc., P.Geo) is
available under Defense Metals Corp.'s profile on SEDAR (
www.sedar.com
)
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SOURCE
Defense Metals Corp.
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%SEDAR: 00042886E
For further information:
please visit https://defensemetals.com/ or contact: Todd Hanas, Bluesky Corporate
Communications Ltd., Vice President, Investor Relations, Tel: (778) 994 8072, Email: [email protected]
CO: Defense Metals Corp.
CNW 08:00e 30-OCT-20